Commodities Traders Have Succumbed To Their 'Widowmaker Trade'

Writing on the FuelFix blog, Matt Smith points us to the
latest results in the spread between March and April
2015 natural gas contracts. This is a when traders attempt to
gauge the wind-down in winter supplies.

Earlier this year, the spread for 2015 surged to $0.75, as
traders figured this year's polar vortex would have significantly
depleted storage for next year.

But temperatures
are set to dip into the '40s and 50s in the next few weeks
for the Midwest and Northeast. As a result, Smith writes,
"the expectation of adequate storage levels exiting next
winter has narrowed the winter premium on the March contract
versus April’s contract to a preposterously paltry $0.20."